Bakkt BTC custody service now available for all institutional clients after the platform obtained approval from regulators in New York. In the meantime, the Bitcoin futures product launched by the Intercontinental Exchange continues to set records as we read previously in the Bitcoin news.
Bakkt COO Adam White announced the new idea via a blog post that was published on Monday and according to the announcement, the New York Department of Financial Services has given Bakkt the green light on offering the enterprise-grade Bakkt BTC custody services to institutional clients.
Before the approval, Bakkt’s BTC custody service was available for those clients who were trading the company’s Bitcoin Futures product which was launched in September 2019. The company joined the likes of Fidelity and Coinbase in the emerging institutional crypto custody scene. Gabor Gurbacks from VanEck praised the platform for the move and stated that it could help to encourage bigger institutional adoption of the leading cryptocurrency. As per the reports previously, a study crypto trading resource The Tie explained that there is a major decline in institutional BTC interest.
Apart from re-igniting the interest, Bakkt’s expanded custody services will also signal the entry of a trusted name in the custody scene. Back in September, the US Securities and Exchange Commission still highlighted custody as one of the major points for the industry. The lack of trusted custody is also one of the major reasons that are provided by the SEC for refusing to approve a BTC ETF Filing.
For Bakkt, the end goal is to onboard institutional players that are already on the custody platform. According to the announcement, Galaxy Digital and VC Company Pantera Capital including the crypto brokerage company Tagomi are already using the Bakkt Warehouse. White believes that Bakkt will leverage the status of the parent company ICE and the company has also taken further measures to guarantee robust security for the custody platform.
Despite the very slow start, the Bakkt BTC futures trading have also started to post some new trading volume records. The increase in trading volume has coincided with periods of price struggles for Bitcoin and the fluctuations that happened during and after the flash crash.
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